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This Discussion Paper focuses on strategic adjustments made by leading international dairy firms in response to world market developments in the late 1990s and early 2000s. Firms whose strategies were analyzed include Fonterra, Nestle, selected other Western European companies (including the Kerry Group and Parmalat), Kraft Foods, Dairy Farmers of America, and Land O'Lakes. In part, the paper describes dairy industry success stories that have implications for a broader group of dairy companies. It also shows how even successful dairy firms have pursued strategies that expose the companies to significant risks. Strategic alliances entered into by the companies received emphasis in the study.


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